Employer NI Saving Calculator
When employees sacrifice salary for a car, the employer saves 15% employer National Insurance on the sacrificed amount. Enter the lease cost and number of employees to see the total saving.
Frequently asked questions
How does the employer save NI through salary sacrifice?
When an employee sacrifices gross salary, their contractual pay falls. The employer no longer pays 15% employer NI on the sacrificed portion. For a £400/month lease, the employer saves £720/year per employee (£400 x 12 x 15%).
Can the employer pass the NI saving to the employee?
Yes. Many employers pass some or all of the NI saving back to employees as an additional discount on the lease. This makes the scheme more attractive and is a common approach, especially in competitive hiring markets.
Does the employer NI saving apply to all fuel types?
Yes. The employer NI saving is based on the salary sacrifice amount, not the car's fuel type or emissions. However, employees benefit far more from EVs because of the low BIK rate, so EV-only schemes are most popular.
Is there a limit on employer NI saving?
The saving applies to the full sacrificed amount up to the employee's salary. In practice, most employers cap salary sacrifice at 30-40% of gross salary to ensure the employee remains above National Minimum Wage after the deduction.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.